"Regulation is our friend," says Martin Schnaier, Sanne’s (SAN) chief executive officer designate – and he may have a point. Increased oversight and a beefed-up global regulatory regime offer profitable opportunities for the wider advisory complex (think GDPR). The alternative asset and corporate admin services provider posted 12.3 per cent organic revenue growth, aided by record new business wins and gathering momentum in the Asia-Pacific Mauritius segment.
Indeed, the group continued to expand its global presence through 2018, adding the jurisdictions of Spain and France, in addition to Japan shortly after the year-end, while both the EMEA and the North America Alternatives divisions delivered organic growth in excess of 16 per cent during the year. The top line benefited from contributions from newly acquired assets – Luxembourg Investment Solutions (LIS), an alternative investment fund management firm, and AgenSynd, a Spanish loan agency services business. The new businesses are bedding in well, but expansion comes with a price tag, ergo the reduction in the underlying operating profit margin from 34.3 per cent to 31.1 per cent.
Investec expects adjusted pre-tax profit of £52.6m and EPS of 28.8p in 2019, rising to £61.3m and 33.7p in 2020.
| SANNE (SAN) | ||||
| ORD PRICE: | 515p | MARKET VALUE: | £751m | |
| TOUCH: | 514-516p | 12-MONTH HIGH: | 737p | LOW: 447p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 40 | |
| NET ASSET VALUE: | 132p | NET DEBT: | 28% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 35.6 | 7.8 | 6.1 | 4.9 |
| 2015 | 45.6 | 2.4 | 1.4 | 7.0 |
| 2016 | 63.8 | 15.0 | 11.4 | 9.6 |
| 2017 | 113 | 22.4 | 13.1 | 12.6 |
| 2018 | 143 | 23.7 | 12.9 | 13.8 |
| % change | +27 | +6 | -2 | +10 |
| Ex-div: | 25 Apr | |||
| Payment: | 21 May | |||
| *Includes intangible assets of £255m, or 175p a share | ||||
